South Korean authorities will pilot “a prior adequacy review mechanism” starting October 13 to help ensure the safe use of data in new services and technologies such as artificial intelligence (AI).

The mechanism is designed to allow business operators in the field of emerging services and technologies to collaborate with the Personal Information Protection Commission (PIPC) for ways to comply with the Personal Information Protection Act before introducing their products. If operators adhere to these guidelines, they will not face administrative penalties, but current services are not subject to this system.

The initiative serves as a safeguard, particularly as many recent AI and emerging technology businesses operate in the gray area between legality and illegality, according to the PIPC. The system’s purpose and mission were outlined in the “Policy Direction for Safe Usage of Personal Data in the Age of AI” issued by the PIPC in August 2023.

The relevant procedures will be completed after evaluating the results of the pilot operation, and the system will officially take effect in January 2024.

Under the new system, operators who are unsure whether their products comply with the Personal Information Protection Act while developing services and technologies, including AI, can fill in an application available on the PIPC website and submit it via email. The PIPC will then analyze the operator’s handling of personal information based on the application after which the parties will discuss compliance methods. Once PIPC verifies that the operator is providing services properly, the latter will be exempt from penalties.

“The prior adequacy review mechanism is a regulatory measure to minimize the legal uncertainties that operators, including startups and prospective entrepreneurs, may encounter when utilizing AI and emerging technologies,” PIPC head Ko Hak-soo said. “It is expected to both foster a trusted environment for personal information protection in society and stimulate the growth of innovative services.”

By Kang Bong-jin and Minu Kim

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